IMO Unveils Global Emission-Reduction Targets, Implications for Shipping Industry and Freight Rates

Fuel TechHigh Tech / High TouchTrade & Border IssuesHot Spots
Written By Jennifer Joslyn

The International Maritime Organization (IMO) has announced new global emission-reduction targets, but the ambiguity surrounding the means to achieve these targets is expected to limit new ship ordering. The agreement includes the development of a global carbon levy, potentially impacting containerized cargo shippers with higher future freight costs. Meanwhile, tanker and dry bulker owners may benefit from the uncertainty over future regulations, as it keeps newbuilding orders suppressed. The IMO's decarbonization plans face challenges, as the strategy lacks clarity and the potential for increased reliance on older, less efficient vessels may contradict GHG targets.

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Jennifer Joslyn
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